SHRI ARYA CHANAKYA NAGARI SAHKARI PATSANSTHA MARYA ICHALKARANJI,ICHALKARANJI vs. INCOME TAX OFFICER, ICHALKARANJI
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCHES “A”, PUNE
BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER
AND SHRI VINAY BHAMORE, JUDICIAL MEMBER
आयकर अपील सं. / ITA No.2682/PUN/2024
िनधारण वष / Assessment Year: 2020-21
Shri Arya Chanakya Nagari
Sahkari Patsanstha Marya
Ichalkaranji,
Girnar Apartments,
Fire Fighter Road,
Behind Municipal Building,
Ichalkaranji-416115
Maharashtra
PAN : AAAAA2055Q
Vs.
ITO Ward-1,
Ichalkaranji
अपीलाथ / Appellant
यथ/Respondent
Assessee by:
None
Department by:
Shri Ramnath P. Murkunde
Date of hearing:
27.01.2025
Date of Pronouncement:
30.01.2025
आदेश / ORDER
PER DR. MANISH BORAD, AM :
This appeal at the instance of the assessee is directed against the order of the Ld. CIT(A) dated 21.11.2024 which is arising out of order u/s.143(3) of the Income Tax Act, 1961 dated
30.08.2022. 2. Assessee has raised following grounds of appeal:
“1. On the facts and circumstances of the case and in law the CIT(A),
NFAC erred in confirming the action of the AO of denying deduction under section 80P in respect interest earned by the appellant society on deposits with other co-operative banks, not accepting the submission of the appellant in this respect.
Shri Arya Chanakya Nagari
Sahkari Patsanstha Marya Ichalkaranji
The appellant prays that the AO be directed to delete the addition.
The appellant craves leave to add, amend, alter, modify, delete or add a new ground of appeal before or at the time of hearing.”
The sole grievance of the assessee is that ld. CIT(A) erred in denying the benefit u/s. 80P(2)(d) of the Act for the interest of Rs.4,58,43,605/- earned from deposits made with various Co- operative Banks.
In the course of hearing, none appeared on behalf of the assessee. However, considering that the issue in question has already been decided by this Bench through catena of decisions, we have considered to hear the appeal with the able assistance from the ld. Departmental Representative.
We have heard the ld. Departmental Representative and perused the record placed before us. The solitary issue raised in the instant appeal is whether the assessee is entitled for deduction u/s 80(P)(2)(d) of the Act on the interest earned on deposits made with other Co-operative Banks. Undisputedly, the assessee has earned interest of Rs.4,58,43,605/- from Fixed deposits made with various cooperative banks.
Section 80P(2)(d) of the Act provides that the sum received in respect of any income by way of interest or dividend derived by Cooperative Society from its investment with any other Cooperative Society, the whole of such income is eligible for deduction u/s.80P of the Act. We observe that section 80P(2)(d) of the Act refers to the interest from Cooperative Society but it has been consistently held by this Tribunal (Pune Benches) that Shri Arya Chanakya Nagari Sahkari Patsanstha Marya Ichalkaranji
3
Cooperative banks are basically Cooperative Societies except that they get license for doing the banking business. We find that this Tribunal in case of Kolhapur District Central Co-op. Bank Kanista
No.1365/PUN/2023, dated 01.01.2024 dealing with similar issue after placing reliance on another decision of this Tribunal in the case of The Ugar Sugar Works Kamgar & Dr. Shirgaokar
Shaikshanik Trust Nokar Co-op Credit Society vs. ITO in ITA
No.84/PAN/2018, dated 27.05.2022 has held that the interest earned from deposits with Cooperative Banks are also eligible for deduction u/s.80P(2)(d) of the Act. We therefore respectfully following the above referred decisions hold that the assessee is eligible for deduction u/s.80P(2)(d) of the Act for the alleged interest income earned from Cooperative Banks. Findings of the ld. CIT(A) is set-aside and the alleged disallowance is deleted.
Effective grounds of appeal raised by the assessee are allowed.
In the result, appeal of the assessee is allowed.
Order pronounced on this 30th day of January, 2025. (VINAY BHAMORE)
ACCOUNTANT MEMBER
पुणे / Pune; दनांक / Dated : 30th January, 2025. Satish
Shri Arya Chanakya Nagari
Sahkari Patsanstha Marya Ichalkaranji
आदेश क ितिलिप अ ेिषत / Copy of the Order forwarded to :
अपीलाथ / The Appellant. 2. यथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “A” बच, पुणे / DR, ITAT, “A” Bench, Pune.
गाड फ़ाइल / Guard File. आदेशानुसार / BY ORDER,
//// Senior Private Secretary
आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.